The November Budget Forecast was released today and it shows a projected shortfall of $1.2 billion for the current biennium - 2010-2011. The shortfall is almost entirely due to lower than expected revenues which are now forecast to fall $1.156 billion below earlier estimates. The lower revenue projection is largely due to lower than expected income tax collections which plummeted by $827 million.
Compounding the bad news, the projected shortfall for the 2012-2013 biennium is now projected at $5.4 billion - without including an adjustment for inflation. The $5.4 billion figure includes repayment of the K-12 aid payment deferral but does not include repayment of the K-12 property tax recognition shift.
You can access the documents related to the forecast here at http://www.doer.state.mn.us/ forecast. You can watch the budget forecast press conference including reactions from Governor Pawlenty and legislative leaders here at http://www.senate.leg.state.mn.us/media/index.php?ls.
